Title
Guaranteed Maximum Price for Construction - NW 5th Avenue Streetscape Phase II (NB)
Explanation
The Gainesville Community Redevelopment Agency (CRA) is committed to strengthening and affirming the significance of the NW 5th Ave corridor through on-going redevelopment initiatives in both the private and public realms. As part of this effort, the CRA has systematically pursued phased utility undergrounding along the entire corridor. Phase I of the NW 5th Ave Improvements Project, east of NW 6th Street, was completed in April 2008. Now the CRA has construction documents to complete the next phase of the project, from NW 6th Street to NW 10th Street.
The scope of work for Phase II of the NW 5th Ave Improvements project extends through the heart of the corridor and includes a revitalized streetscape of wider sidewalks with ADA compliancy, new clay brick crosswalks and sidewalks, utility undergrounding, decorative pedestrian and roadway lighting, resurfacing the roadway, and construction of new curb and gutter. In addition to these improvements, the GRU-Water/Wastewater department is installing a water-line upgrade along the corridor. This synergistic approach will allow for further redevelopment of the corridor by providing the needed water flow capacity for new developments.
On October 19, 2009 the CRA Board heard a presentation on roadway project updates, where funding was discussed for several of CRA initiated projects. The NW 5th Ave Streetscape Phase II project in particular was one of the projects that did not have complete funding. Suggestions were given by the board to address the funding gap.
On November 3, 2009 the FAPS advisory board approved a Guaranteed Maximum Price (GMP) for Construction from PPI Construction Management/Charles Perry Construction, not-to-exceed $890,000 to construct NW 5th Avenue Phase II, as designed. Understanding that a funding gap existed, the board approved the GMP in anticipation that funding would be sought prior to their next scheduled meeting in February 2010, and thus to not delay construction until that time.
The CRA has now negotiated a revised Guaranteed Maximum Price (GMP) for Construction of the NW 5th Ave Phase II Streetscape from PPI Construction Management/Charles Perry Construction based on 90% construction documents. The GMP represents the maximum amount to be paid directly to the construction manager for their work on the project, assuming no major changes in the scope of the project (work performed by others such as the material cost for lighting, overhead to underground electrical service transitions to existing properties, and bringing individual properties up to meet current electrical code during conversion, is not represented in the GMP). The opportunity does exist; however, that the CRA may pay less than the GMP as the actual bids for trade packages may be less than proposed in the GMP, resulting in savings that are returned to the CRA. Additionally, if any contingency remains after project closeout, that amount is returned to the CRA as well. In contrast, if the actual bids for trade packages are more than proposed in the GMP, the CRA will not pay more than the amount in the GMP.
Since the October 2009 CRA meeting, by request of the City Manager, the CRA and Public Works Department have been working together to address the funding gap in order to move the project forward to construction.
The revised Guaranteed Maximum Price for construction of the project is $737,178.00. There is still an existing funding gap of approximately $10,000 to cover the project scope included in the GMP. In addition to the work included in the scope of the GMP, there is also approximately $97,000 in additional project costs for pedestrian and roadway lighting and overhead to underground electrical service transitions to individual properties. Therefore, the total funding gap is approximately $107,000.
Fiscal Note
There is $321,501 available in FAPS account # 613-790-W68-W537-6030-5520 and $155,608 in FAPS account# 330-790-760-W508-4120-5540. Funding from Public Works Community Development Block Grant in the amount of approximately $250,000 is also available.
Recommendation
CRA Executive Director to CRA: 1) Approve the not-to-exceed Guaranteed Maximum Price of $737,178.00 to construct the NW 5th Avenue Phase II Streetscape, as designed, and 2) recommend that the City Commission approve the not-to-exceed Guaranteed Maximum Price of $737,178.00 to construct the NW 5th Avenue Phase II Streetscape, as designed.